From: Subject: Hunter Adams: Admin. Proc. Rel. No. 33-8282 / September 8, 2003 Date: Tue, 11 Jan 2011 15:04:49 -0500 MIME-Version: 1.0 Content-Type: multipart/related; type="text/html"; boundary="----=_NextPart_000_0000_01CBB1A0.E42D5150" X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2900.3664 This is a multi-part message in MIME format. ------=_NextPart_000_0000_01CBB1A0.E42D5150 Content-Type: text/html; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable Content-Location: http://www.sec.gov/litigation/admin/33-8282.htm Hunter Adams: Admin. Proc. Rel. No. = 33-8282 / September 8, 2003
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3D"" 3D""=20

UNITED STATES OF AMERICA
Before the
SECURITIES AND = EXCHANGE=20 COMMISSION

SECURITIES ACT OF 1933
Release No. 8282/September 8, = 2003

SECURITIES EXCHANGE ACT OF 1934
Release No. 48457/September = 8,=20 2003

ADMINISTRATIVE PROCEEDING
FILE NO. 3-10437

=

In the Matter of

HUNTER ADAMS,
JASON A. COHEN,
STEVEN M. = COHEN,
DAVID=20 HIRSCH,
JONATHAN D. WINSTON,
JOHN J. GREMMO, = III,
JAMES L.=20 BILA,
CHRISTIAN W. BLAKE,
LOUIS R. FACCHINI, = JR.,
ROBERTO=20 A. MANGIARANO,
JOSEPH P. MANNINO,
DAVID M. = MARGULES,
JAMES=20 J. PELLIZZI,
DAVID M. PESSO,
MICHAEL = PUGLIESE,
CHRISTOPHER=20 J. RUSSO,
HOWARD I. WEINSTEIN,
and ROBERT J. = WINSTON

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:		 ORDER ON MOTION FOR PARTIAL SUMMARY DISPOSITION AND = DEFAULT=20 JUDGMENT AND REPORT FOLLOWING PREHEARING=20 CONFERENCE

Background

On March 8, 2001, the Securities and Exchange Commission = ("Commission")=20 initiated this proceeding pursuant to Section 8A of the Securities = Act of=20 1933 ("Securities Act") and Sections 15(b)(6) and 21C of the = Securities=20 Exchange Act of 1934 ("Exchange Act"). The Order Instituting = Proceedings=20 ("OIP") alleges fraud in the offer and sale of microcap securities = from=20 August 1995 through at least October 1997, by eighteen persons = associated=20 with First United Equities Corporation ("First United"), at the = time a=20 registered broker-dealer. The OIP alleges that Respondents Adams, = J.=20 Cohen, S. Cohen, Hirsch, and J. Winston operated and controlled = First=20 United; Respondent Gremmo was the firm's trader; and Respondents = Bila,=20 Blake, Facchini, Mangiarano, Mannino, Margules, Pellizzi, Pesso, = Pugliese,=20 Russo, Weinstein, and R. Winston were registered representatives. = (OIP at=20 2-4.)

On April 29, 2003, after all the Respondents submitted guilty = pleas in=20 a parallel criminal proceeding, United States v. Winston, = 00 Cr.=20 1248 (E.D.N.Y. filed Mar. 8, 2001), I lifted a stay that I had = imposed on=20 April 12, 2001, at the request of the Division of Enforcement = ("Division")=20 and the U.S. Attorney for the Eastern District of New York=20 ("USAO").1 I also ordered Respondents to file = answers to=20 the OIP by May 30, 2003, and I allowed the Division to move for = summary=20 disposition.

On August 7, 2003, the Division filed a Motion and Memorandum = of Law In=20 Support of the Division of Enforcement's Motion for Partial = Summary=20 Disposition and Default Judgment ("Motion and Memorandum"). The = bases for=20 the motion are Respondents' guilty pleas to conspiracy to commit=20 securities fraud or committing securities fraud, or both, in 2001 = and=20 2002, and the facts admitted in their guilty pleas. (Motion and = Memorandum=20 at 1-2.) The Motion and Memorandum is accompanied by two volumes = that=20 contain a declaration by Division counsel that exhibits A through = LL are=20 true and accurate copies of court documents from the parallel = criminal=20 proceeding.2 The exhibits to the Motion and = Memorandum are=20 all matters of public record and I take official notice of = them.3 See 17 C.F.R. =A7 201.323, = see=20 also 17 C.F.R. =A7 201.350.

Pursuant to Rules of Practice 154, 155, and 250; 17 C.F.R. = =A7=A7 201.154,=20 .155, .250, the Division moves for:

(a) partial summary disposition against those respondents who = have=20 filed an answer in this action and certain others, and (b) = partial=20 default judgment against certain respondents who have not filed = an=20 answer in this action.4

(Motion and Memorandum at 1, 26.)

The Division represents that all the Respondents have (1) pled = guilty=20 to participating in a conspiracy to commit securities fraud with = respect=20 to Ashton Technology Group Inc. ("Ashton") and National Medical = Financial=20 Services Corp. ("NMFS") securities as set forth in the first Count = of each=20 of the Indictments, (2) admitted under oath that they participated = in this=20 conspiracy, and (3) signed plea agreements with the USAO. (Motion = and=20 Memorandum at 19.)

As of the date of this Order, Respondents Hirsch, Blake, = Mannino,=20 Pesso, Pugliese, Russo, and R. Winston have filed answers to the=20 allegations in the OIP. (Motion and Memorandum at 2-3.)

Respondents J. Cohen, Pellizzi, and Russo were represented at = the=20 telephonic prehearing conference on September 4, 2003. These = Respondents=20 do not object to the relief that the Division requests in the = Motion and=20 Memorandum, but they expect to object to any subsequent Division = requests=20 for disgorgement and/or civil penalties.

Findings of Fact

Hunter Adams

The OIP charges that Respondent Adams willfully violated, and = committed=20 or caused the violation of Section 17(a) of the Securities Act and = Section=20 10(b) of the Exchange Act and Rule 10b-5. (OIP at 6.)

Respondent Adams signed a Plea Agreement to enter a guilty plea = with=20 the USAO on November 27, 2002. (Motion and Memorandum, Exhibit F.) = On the=20 same day,5 Respondent Adams, a = thirty-five-year-old high=20 school graduate, pled guilty to Count One, Conspiracy to Commit=20 Securities, Mail, and Wire Fraud, and Count Sixteen, Conspiracy to = Commit=20 Money Laundering, of the Second Superseding Indictment.6 (Motion and Memorandum, Exhibits D at = 28, 51, E=20 at 4, 27-28.) When entering his guilty plea, Respondent Adams = admitted=20 that:

With respect to Count One . . . between approximately 1995 = and March=20 2001, I knowingly and willfully participated in a scheme to = manipulate=20 the market price of certain stocks and stock warrants that = traded on=20 various exchanges by, among other things, gaining control over = most of=20 the buying and selling the house stocks, among others, [First = United],=20 thereby artificially inflating the price of the stock.

With respect to Count 16 . . . between 1995 and March 2001, I = knowingly and willfully conspired with others to conduct = financial=20 transactions which involved proceeds of securities fraud by = transferring=20 proceeds of the fraud back into certain brokerage firms, = including=20 [Preston Langley], with the intent to promote the carrying on of = the=20 fraud.7

(Motion and Memorandum, Exhibit E at 28-29.)

Jason A. Cohen

The OIP alleges that Respondent J. Cohen willfully violated, = and=20 committed or caused the violation of Section 17(a) of the = Securities Act=20 and Section 10(b) of the Exchange Act and Rule 10b-5. (OIP at = 6.)

In 2002, Respondent J. Cohen, a member of the Massachusetts = bar, was=20 fifty years of age. (Motion and Memorandum, Exhibit G at 3-6.) On = November=20 14, 2002, Respondent J. Cohen signed a Cooperation Agreement with = the=20 USAO, and he pled guilty to Count One, Conspiracy to Commit = Securities,=20 Mail, and Wire Fraud, and Count Sixteen, Conspiracy to Commit = Money=20 Laundering, of the Second Superseding Indictment.8 (Motion and Memorandum, Exhibits D at = 28, 51, G=20 at 17-18, H.) When entering his guilty plea, Respondent J. Cohen = stated=20 that:

During the period from 1994 to early 1998, I was employed as = an owner=20 of record of [First United], a broker/dealer located in Garden = City, New=20 York. During my employment at First United, I agreed with others = to=20 commit securities fraud by, among other things, agreeing to = accept cash=20 payments and free stock from stock promoters and issuers in = exchange for=20 promoting their stocks and acquiescing in the fraudulent sale = practices=20 of First United sales force of securities brokers.

One example of the free stock that First United received from = an=20 issuer in exchange for promoting the stock was a stock of [IRT=20 Industries, Inc.], which was given to First United to encourage = First=20 United to promote the stock. In addition, I agreed with others = to=20 launder the proceeds of our securities frauds by, among other = things,=20 reinvesting those proceeds in First United for the purpose of=20 perpetuating First United's brokerage business. =

(Motion and Memorandum, Exhibit G at 19-20.)

Steven M. Cohen

The OIP alleges that Respondent S. Cohen willfully violated, = and=20 committed or caused the violation of Section 17(a) of the = Securities Act=20 and Section 10(b) of the Exchange Act and Rule 10b-5. (OIP at = 7.)

On April 19, 2001, Respondent S. Cohen signed a Cooperation = Agreement=20 with the USAO in which he agreed to enter a guilty plea. (Motion = and=20 Memorandum, Exhibit J.) On April 18, 2001, Respondent S. Cohen, = age=20 forty-five with four years of college but no degree, pled guilty = to Count=20 One, Conspiracy to Commit Securities, Mail, and Wire Fraud, and = Count Two,=20 Securities Fraud-Ashton, of the Indictment.9 (Motion and Memorandum, Exhibits D = at 28, 38,=20 I at 2-3, 17-18.)

When offering his guilty plea, Respondent S. Cohen acknowledged = that he=20 knowingly conspired with others to commit securities fraud by = manipulating=20 the price of securities, including the securities of Ashton. = (Motion and=20 Memorandum, Exhibit I at 18-20.)

David Hirsch

The OIP charges Respondent Hirsch with willfully violating, and = committing or causing the violation of Section 17(a) of the = Securities Act=20 and Section 10(b) of the Exchange Act and Rule 10b-5. (OIP at = 7.)

Respondent Hirsch signed a Plea Agreement with the USAO on = December 16,=20 2002. (Motion and Memorandum, Exhibit L.) On the same day, = Respondent=20 Hirsch, age forty-two and a college graduate, pled guilty to Count = One,=20 Conspiracy to Commit Securities, Mail, and Wire Fraud, and Count = Two,=20 Securities Fraud-Ashton. (Motion and Memorandum, Exhibits D at 28, = 38, K=20 at 3, 18.) When he entered his guilty plea, Respondent Hirsch = admitted=20 that, as to Count One, he agreed with others to charge excessive=20 commissions and did not disclose this fact to his customers. And, = as to=20 Count Two, he had charged clients excessive commissions on = purchases and=20 sales of Ashton securities without informing his clients. (Motion = and=20 Memorandum, Exhibit K at 19.)

On April 3, 2003, Respondent Hirsch was sentenced to three = years=20 probation, a special assessment of $200, and a restitution order = to be=20 issued later. In addition, Respondent Hirsh is to notify any = potential=20 employer who would employ him in the securities industry of his=20 conviction. (Motion and Memorandum, Exhibit M.)

James L. Bila

The OIP alleges that Respondent Bila willfully violated Section = 17(a)=20 of the Securities Act and Section 10(b) of the Exchange Act and = Rule=20 10b-5. (OIP at 7.)

On November 1, 2002, Respondent Bila, age thirty-two and a high = school=20 graduate, signed a Plea Agreement with the USAO. (Motion and = Memorandum,=20 Exhibit O.) On the same date, Respondent Bila pled guilty to Count = One,=20 Conspiracy to Commit Securities, Mail, and Wire Fraud, and Count = Six,=20 Securities Fraud-Americom, of the Second Superseding = Indictment.10 (Motion and Memorandum, Exhibits D = at 28, 43,=20 N at 30.) When he entered his guilty plea, Respondent Bila = admitted that=20 he conspired to, and did commit securities fraud by making false = and=20 misleading statements about securities to potential customers, = including=20 the securities of American Comstock.11 (Motion and Memorandum, Exhibit N = at=20 30-31.)

Christian W. Blake

The OIP alleges that Respondent Blake willfully violated = Section 17(a)=20 of the Securities Act and Section 10(b) of the Exchange Act and = Rule=20 10b-5. (OIP at 7.)

Respondent Blake entered into a Plea Agreement with the USAO on = November 1, 2002. (Motion and Memorandum, Exhibit P.) On the same = day,=20 Respondent Blake, age thirty-two with a high school equivalency = degree,=20 entered a guilty plea to Count One, Conspiracy to Commit = Securities, Mail,=20 and Wire Fraud, and Count Six, Securities Fraud-Americom, of the = Second=20 Superseding Indictment.12 (Motion and Memorandum, Exhibits D = at 28, 43,=20 N at 5, 34.) When he entered his guilty plea, Respondent Blake = admitted=20 that:

[From] approximately May 1995 through March 2001, in the = Eastern=20 District of New York and - well, where I agreed, conspired with = others=20 to violate the law of the United States against security fraud = and from,=20 approximately, May [1995] to March 2001 in the Eastern District = of New=20 York and elsewhere I did violate the laws against security fraud = when in=20 my capacity as a stock broker I intentionally made false and = misleading=20 statements to my clients concerning the value of the stock I was = attempting to induce them to purchase in order to manipulate the = price=20 of the stock.

(Motion and Memorandum, Exhibit N at 33.)

Louis R. Facchini, Jr.

The OIP alleges that Respondent Facchini willfully violated = Section=20 17(a) of the Securities Act and Section 10(b) of the Exchange Act = and Rule=20 10b-5. (OIP at 7.)

On February 5, 2002, Respondent Facchini entered into a = Cooperation=20 Agreement with the USAO. (Motion and Memorandum, Exhibit R.) On = the same=20 day, Respondent Facchini, age thirty-six with a college degree in = criminal=20 justice, pled guilty to Count One, Conspiracy to Commit = Securities, Mail,=20 and Wire Fraud, and Count Two, Securities Fraud-Ashton, of the = Second=20 Superseding Indictment.13 (Motion and Memorandum, Exhibits D = at 28, 38,=20 Q at 3-4, 17.) In connection with his guilty plea, Respondent = Facchini=20 stated that he was employed in the securities industry from the = end of=20 1995 to June 1996, and that "[d]uring that period of time, I, with = others,=20 participated in a scheme to defraud by making misstatements to = investors=20 [and] by not disclosing commissions I earned on certain = transactions in=20 regards to stock. I also made unauthorized trades." (Motion and=20 Memorandum, Exhibit Q at 18.)

John J. Gremmo, III

The OIP alleges that Respondent Gremmo willfully violated = Section 17(a)=20 of the Securities Act and Section 10(b) of the Exchange Act and = Rule=20 10b-5. (OIP at 7.)

On January 23, 2002, Respondent Gremmo entered a Cooperation = Agreement=20 with the USAO. (Motion and Memorandum, Exhibit T.) On the same = date,=20 Respondent Gremmo, age forty-six with a college degree, pled = guilty to=20 Count One, Conspiracy to Commit Securities, Mail, and Wire Fraud, = and=20 Count Two, Securities Fraud-Ashton, of the Indictment.14 (Motion and Memorandum, Exhibits B = at 16, 26,=20 S at 3-4, 20.) When entering his guilty plea, Respondent Gremmo=20 stated:

As a trader, I was in the position of taking part in the=20 implementing, the artificial inflation and maintenance of the = price of=20 certain house stocks held by First United, which included Ashton = stock.=20 I hereby accept responsibility and plead guilty to Count 1 of = the=20 indictment, which is conspiracy to commit securities, mail and = wire=20 fraud.

I acknowledge my part in this count and that between = February, 1994,=20 through 1997, in the Eastern District and elsewhere, I and = others took=20 part in a common scheme or plan at First United by engaging in = acts,=20 practices and a course of business which operated as a fraud = upon=20 members of the investing public by artificially inflating and = supporting=20 the price of various stocks held by First United. Although I was = not a=20 retail salesman, as a trader, I was aware that stock = confirmations were=20 routinely sent to customers by either mail or wire.

I also accept responsibility and plead guilty to Count 2, = which is=20 securities fraud with respect to the Ashton stock, in that = between=20 February, 1994 and 1997, in the Eastern District and elsewhere, = I=20 knowingly took part in a scheme in which various stocks, = specifically=20 Ashton, which were held by First United, had their prices = artificially=20 supported and inflated, to the detriment of the investing = public, and I=20 am truly sorry for my involvement in this matter.15

(Motion and Memorandum, Exhibit S at 21-22.)

Roberto A. Mangiarano

The OIP charges that Respondent Mangiarano willfully violated = Section=20 17(a) of the Securities Act and Section 10(b) of the Exchange Act = and Rule=20 10b-5. (OIP at 7.)

On December 3, 2002, Respondent Mangiarano entered into a Plea=20 Agreement with the USAO. (Motion and Memorandum, Exhibit V.) On = the same=20 day, Respondent Mangiarano, age twenty-nine with several years of = college,=20 pled guilty to Count One, Conspiracy to Commit Securities, Mail = and Wire=20 Fraud, and Count Sixteen, Conspiracy to Commit Money Laundering, = of the=20 Second Superseding Indictment. (Motion and Memorandum, Exhibits D = at 28,=20 51, U at 4, 30.) When entering his guilty plea, Respondent = Mangiarano=20 admitted that:

From April 1995 through March 2001, in the Eastern District = of New=20 York, while I worked at First United, Lexington Capital and = Stockton=20 Equities Group, I conspired with others to manipulate the market = price=20 of certain house stocks, such as Global Ecological Services, by, = among=20 other things, gaining control of most of the shares, thereby=20 artificially inflating the price of the stock.

Additionally, I agreed with others that monies which were = generated=20 by the fraudulent scheme would be transferred back into the = brokerage=20 firms to promote the securities fraud.16

(Motion and Memorandum, Exhibit T at 31-32.)

Joseph P. Mannino

The OIP alleges that Respondent Mannino willfully violated = Section=20 17(a) of the Securities Act and Section 10(b) of the Exchange Act = and Rule=20 10b-5. (OIP at 7-8.)

Respondent Mannino entered into a Plea Agreement with the USAO = on=20 October 28, 2002. (Motion and Memorandum, Exhibit X.) On the same = day,=20 Respondent Mannino, age twenty-nine with two years of college, = pled guilty=20 to Count One, Conspiracy to Commit Securities, Mail, and Wire = Fraud, and=20 Count Six, Mail Fraud-Americom, of the Second Superseding=20 Indictment.17 (Motion and Memorandum, Exhibits D = at 28, 43,=20 W at 3-4, 29.) When entering his guilty plea, Respondent Mannino = stated=20 that:

In or about between February 1994, and March of 2000, within = the=20 Eastern District of New York, specifically in Long Island, I = conspired=20 with others to make untrue statements, material facts to the = investing=20 public in connection with the purchase and sales of securities = in=20 violation of federal law.

And Count Six. In or about between July of 1998 and August of = 1999,=20 within the Eastern District of New York, I knowingly caused a = telephone=20 call to be made to Lexington, to Capital, to a customer and = induced him=20 to purchase shares of American Com (ph) stock by deceptive = means,=20 including omitting material facts in violation of federal law.=20

(Motion and Memorandum, Exhibit W at 30.)

David M. Margules

The OIP charges that Respondent Margules willfully violated = Section=20 17(a) of the Securities Act and Section 10(b) of the Exchange Act = and Rule=20 10b-5. (OIP at 8.)

Respondent Margules entered into a Plea Agreement with the USAO = on=20 November 27, 2002. (Motion and Memorandum, Exhibit Z.) On the same = day,=20 Respondent Margules, age forty-six and a high school graduate, = pled guilty=20 to Count One, Conspiracy to Commit Securities, Mail, and Wire = Fraud, and=20 Count Five, Securities Fraud-IRT Industries, of the Second = Superseding=20 Indictment.18 (Motion and Memorandum, Exhibits D = at 28, 41,=20 Y at 3, 17.) When entering his guilty plea, Respondent Margules = admitted=20 that:

I participated with Steve Cohen on recommendations to my = clients and=20 I did so with not having sufficient basis for making these=20 recommendations . . . . I was told that these stocks were good = stocks=20 and I went along . . . . It was myself and Steve Cohen on a = speakerphone=20 . . . And also Steve Cohen made price predictions suggesting = guarantees=20 of profits.

(Motion and Memorandum, Exhibit Y at 18-19.) Respondent = Margules=20 acknowledged that one of the stocks was IRT Industries, Inc. = (Motion and=20 Memorandum, Exhibit Y at 18.)

James J. Pellizzi

The OIP charges that Respondent Pellizzi willfully violated = Section=20 17(a) of the Securities Act and Section 10(b) of the Exchange Act = and Rule=20 10b-5. (OIP at 8.)

On April 20, 2001, Respondent Pellizzi entered into a = Cooperation=20 Agreement with the USAO. (Motion and Memorandum, Exhibit BB.) On = the same=20 day, Respondent Pellizzi, age thirty-five with a year and a half = of=20 college, pled guilty to Count One, Conspiracy to Commit = Securities, Mail,=20 and Wire Fraud, and Count Three, Securities Fraud-EquiMed, of the=20 Indictment.19 (Motion and Memorandum, Exhibits B = at 16, 27,=20 AA at 3-4, 17.) When he pled guilty, Respondent Pellezzi admitted=20 that:

I was employed as a stock broker by First United Corporation = from=20 May, 1995, through April, 1997 . . . While I was employed by = First=20 United, I committed securities fraud by, among other things, = failing to=20 disclose excessive commissions and sales credits I received in=20 connection with the sale of certain house stocks, including = Equimet. I=20 knowingly and willfully conspired with certain individuals named = in the=20 indictment and others to commit securities fraud against = customers of=20 First United.

(Motion and Memorandum, Exhibit AA at 18.)

David M. Pesso

The OIP charges that Respondent Pesso willfully violated = Section 17(a)=20 of the Securities Act and Section 10(b) of the Exchange Act and = Rule=20 10b-5. (OIP at 8.)

On October 2, 2002, Respondent Pesso entered into a Plea = Agreement with=20 the USAO. (Motion and Memorandum, Exhibit DD.) On October 20, = 2002,=20 Respondent Pesso, age thirty-four with two years of college, pled = guilty=20 to Count One, Conspiracy to Commit Securities, Mail, and Wire = Fraud, and=20 Count Two, Securities Fraud-Ashton, of the Second Superseding=20 Indictment.20 (Motion and Memorandum, Exhibits D = at 28, 38,=20 CC at 3-4, 19.) When he entered his plea, Respondent Pesso = admitted=20 that:

[F]rom May of 1995 through May of 1996, while employed at = First=20 United Equities, I and others conspired to inflate the worth of = certain=20 house stocks, such as Ashton Technologies, by making material=20 misrepresentations to my clients.

The misrepresentations were essentially that I made false = predictions=20 about the stocks worth and future value.

(Motion and Memorandum, Exhibit CC at 19-20.)

Michael Pugliese

The OIP charges that Respondent Pugliese willfully violated = Section=20 17(a) of the Securities Act and Section 10(b) of the Exchange Act = and Rule=20 10b-5. (OIP at 8.)

On April 19, 2001, Respondent Pugliese entered into a = Cooperation=20 Agreement with the USAO. (Motion and Memorandum, Exhibit FF.) On = the same=20 date, Respondent Pugliese, age thirty-three with two years of = college,=20 pled guilty to Count One, Conspiracy to Commit Securities, Mail, = and Wire=20 Fraud, and Count Two, Securities Fraud-Ashton, of the = Indictment.21 (Motion and Memorandum Exhibits B = at 16, 26,=20 EE at 3, 16-17.) When he entered his guilty plea, Respondent = Pugliese=20 admitted that in 1996 and 1997 he knowingly acted illegally with=20 defendants in this case at First United and Lexington Capital.

I misled my customers. I didn't allow them to sell when they = wanted=20 to sell stocks, together with other people. At [First United] I = crossed=20 stocks . . . . I took one stock and sold it . . . to another = broker or=20 another customer of the firm with another broker and he sold me = the=20 stock that he owned in one stock and I sold him a stock that I = owned in=20 another stock.

(Motion and Memorandum, Exhibit EE at 18.)

Christopher J. Russo

The OIP charges that Respondent Russo willfully violated = Section 17(a)=20 of the Securities Act and Section 10(b) of the Exchange Act and = Rule=20 10b-5. (OIP at 8.)

On May 3, 2001, Respondent Russo signed a Cooperation Agreement = with=20 the USAO. (Motion and Memorandum, Exhibit HH.) On the same day, = Respondent=20 Russo, age thirty-six with several years of college, pled guilty = to Count=20 One, Conspiracy to Commit Securities, Mail, and Wire Fraud, and = Count Two,=20 Securities Fraud-Ashton of the Superseding Indictment.22 (Motion and Memorandum, Exhibits C = at 25, 32,=20 GG at 4, 19.) In entering his guilty plea, Respondent Russo = stated:

While working at [First United] and Lexington Capital, I, = along with=20 others, passed along false predictions to my clients, crossed = Ashton=20 stock or used my clients to be a buyer of the stock when another = client=20 wanted to sell the same stock.

I, along with others, also promised customers that they could = participate in future private placements if they bought house=20 stocks.

I failed to disclose these acts to my clients and by doing = so, I know=20 I violated the securities laws.

In addition, I knew that others employed at First United and=20 Lexington Capital were crossing trades and made false price = predictions=20 and by engaging in this conduct, I tacitly agreed with them not = to=20 disclose these acts to the clients.

(Motion and Memorandum, Exhibit GG at 20.)

Howard I. Weinstein

The OIP alleges that Respondent Weinstein willfully violated = Section=20 17(a) of the Securities Act and Section 10(b) of the Exchange Act = and Rule=20 10b-5. (OIP at 8.)

On April 20, 2001, Respondent Weinstein entered into a = Cooperation=20 Agreement with the USAO. (Motion and Memorandum, Exhibit JJ.) On = the same=20 day Respondent Weinstein, age fifty-four with a college degree, = pled=20 guilty to Count One, Conspiracy to Commit Securities, Mail, and = Wire=20 Fraud, and Count Two, Securities Fraud-Ashton, of the = Indictment.23 (Motion and Memorandum, Exhibits B = at 16, 26,=20 II at 3-4, 17.) When entering his guilty plea, Respondent = Weinstein=20 admitted that:

From December, 1994 to December 31, 1997, I was employed as a = stock=20 broker at First United . . . Among my duties were opening = accounts,=20 assisting my clients in purchasing and selling stock, promoting = IPOs.=20 While at the firm, I also trained brokers and gave morning and = afternoon=20 meetings.

In furtherance of my agreement with my coconspirators, I = promoted the=20 sale of stocks and IPOs without fully disclosing my total = commissions=20 and on occasion conveyed false or misleading information of a = material=20 nature, which my clients relied upon and which resulted in a = significant=20 loss of money. I was also guilty of using high-pressure sales = tactics to=20 induce stock purchases.

Furthermore, clients directed me to sell their shares of = stock and=20 due to improper resistance by principals of First United, = including but=20 not limited to some of the defendants charged in the indictment, = such=20 sales were not promptly processed. I [and] my fellow brokers = executed=20 sell orders by engaging in a process called crossing. That = process=20 consists of finding a buyer in order to sell such stock and the = sale not=20 going through until a buyer was found, either from my own = clientele or=20 from the clientele of another broker.

There was also a tremendous amount of churning taking place,=20 especially toward the end of each pay period, when I as well as = all the=20 stock brokers in my firm tried to increase our paychecks. The = principals=20 of First United profited greatly but the clients suffered = significant=20 losses in their investment accounts. Amongst the stocks we = promoted were=20 [NMFS], Ashton . . . and IRT Industries.

(Motion and Memorandum, Exhibit II at 18-19.)

Robert J. Winston

The OIP charges Respondent R. Winston with willfully violating = Section=20 17(a) of the Securities Act and Section 10(b) of the Exchange Act = and Rule=20 10b-5. (OIP at 8.)

On August 20, 2002, Respondent R. Winston entered into a = Cooperation=20 Agreement with the USAO. (Motion and Memorandum, Exhibit LL.) On = the same=20 day, Respondent R. Winston, age thirty-six and a law school = graduate, pled=20 guilty to Count One, Conspiracy to Commit Securities, Mail, and = Wire=20 Fraud, and Count Nine, Securities Fraud-Skynet, of the Second = Superseding=20 Indictment.24 (Motion and Memorandum, Exhibits D = at 28, 46,=20 KK at 3-4, 16.) When entering his plea, Respondent R. Winston = admitted=20 that:

From about April 1996 through November 1997 I was a = stockbroker at=20 First United Equities Corporation, a brokerage firm located in = Garden=20 City, New York . . . .

From December 1989 to February 2001, I was a stockbroker and = an=20 undisclosed principal in another firm Montrose Capital located = in New=20 York City.

At First United and Montrose I sold securities to = investors.

While employed at First United Equities, I agreed with others = to=20 manipulate the prices of various stocks through a variety of = illegal=20 methods, including among them was making false and immaterial = statements=20 to clients to induce them to purchase stock, and my = co-conspirators had=20 an interest in. I and others used high pressure sales tactics to = buy our=20 house stock. I received excessive and undisclosed commissions, = and I=20 also received cash and other things of value to recommend the = house=20 stock to further this scheme. I also used the phones and the = mails.

These are just some of the illegal sales practices I and = others used=20 as First United Equities.

From . . . . November 1998 through February 2001, one of the = house=20 stocks that I agreed to manipulate in this fashion was Skynet. I = knew=20 that my conduct was illegal and wrong when I recommended or = committed=20 it.

I have not detailed in this statement all of my illegal = conduct or=20 all of my illegal conduct committed with = others.

(Motion and Memorandum, Exhibit KK at 17-19.)

Conclusions of Law

Rule 250. Motion For Partial Summary Disposition, 17 C.F.R. = =A7=20 201.250

The Division's motion for partial summary disposition applies = to=20 Respondents S. Cohen, Hirsch, Blake, Mannino, Pellizzi, Pesso, = Pugliese,=20 Russo, Weinstein, and R. Winston. (Motion and Memorandum at = 3.)

Rule 250 of the Commission's Rules of Practice allows motions = for=20 summary disposition of any or all allegations of the OIP after a=20 respondent's answer has been filed, and the investigative file has = been=20 made available to the respondent. The maker of the motion should = prevail=20 where there is no genuine issue with regard to any material fact. = 17=20 C.F.R. =A7 201.250.

Respondents Hirsch, Blake, Mannino, Pesso, Pugliese, Russo, and = R.=20 Winston have filed answers to the allegations in the OIP. (Motion = and=20 Memorandum at 2-3.) Not one of these Respondents has indicated = that he was=20 denied access to the Division's investigative file. There is = nothing that=20 indicates the Division did not follow customary practice and make = the=20 investigative file available for copying and inspection. 17 C.F.R. = =A7=20 201.230.

Summary disposition is appropriate because there is no material = fact at=20 issue. Respondents' plea agreements, guilty pleas to state = criminal=20 charges based on the same activities alleged in the OIP, and=20 acknowledgments that they knew they were acting illegally, = establish that=20 Respondents committed the willful violations alleged in the OIP. I = therefore find that Respondents Hirsch, Blake, Mannino, Pesso, = Pugliese,=20 Russo and R. Winston willfully violated Section 17(a) of the = Securities=20 Act and Section 10(b) of the Exchange Act and Rule 10b-5.

As noted above, Rule 250 is only applicable where a Respondent = has=20 filed an answer. I deny the Division's request that I make summary = disposition findings against Respondents S. Cohen, Pellizzi, and = Weinstein=20 because Rule 250 is inapplicable to these Respondents as these = Respondents=20 have not filed answers.25 (Motion and Memorandum at 3.)

Rule 155. Motion for Default, 17 C.F.R. =A7 201.155

The Division moves for partial default judgments against = Respondents=20 Adams, J. Cohen, Gremmo, Bila, Facchini, Mangiarano, and Margules. = (Motion=20 and Memorandum at 3.)

Rules 155 and 220 of the Commission's Rules of Practice specify = that a=20 party who fails to file an answer to the OIP or to respond to a=20 dispositive motion may be deemed to be in default, and the = administrative=20 law judge may determine the proceeding against that party upon=20 consideration of the record, including the OIP, the allegations of = which=20 may deemed to be true. 17 C.F.R =A7=A7 201.155, .220.

Respondents Adams, Bila, Facchini, J. Cohen, S. Cohen, Gremmo,=20 Mangiarano, Margules, Pellizzi, and Weinstein did not file answers = in=20 response to the OIP, or by May 30, 2003, as I directed. = Furthermore, as of=20 the date of this Order, they have not filed a reply to the = Division's=20 Motion and Memorandum.26 Accordingly, I find these = Respondents to be=20 in default, and I find the allegations in the OIP to be true that = these=20 Respondents willfully violated Section 17(a) of the Securities Act = and=20 Section 10(b) of the Exchange Act and Rule 10b-5.27

Sanctions

The Division seeks an order requiring all Respondents, except = J.=20 Winston, (a) to cease and desist from violating Section 17(a) of = the=20 Securities Act and Section 10(b) of the Exchange Act and Rule = 10b-5, and=20 (b) barring Respondents from association with any broker or = dealer.28 At this time, however, the Division = does not=20 seek disgorgement or civil penalties because only Respondent = Hirsch has=20 been sentenced, and "the sentences imposed will likely impact the=20 Division's determination of disgorgement and/or civil = penalties."29 (Motion and Memorandum at 2.)

Cease and Desist

Section 8A of the Securities Act and Section 21C of the = Exchange Act,=20 authorize the Commission, after notice and opportunity for = hearing, to=20 order a person to cease and desist from committing or causing a = violations=20 of either the Securities Act or the Exchange Act and any future = violations=20 based on a finding that a violation has occurred.

The Commission has found the following considerations = applicable in=20 determining whether to impose a cease and desist order:

[A]long with the risk of future violations, we will continue = to=20 consider our traditional factors in determining whether a=20 cease-and-desist order is an appropriate sanction based on the = entire=20 record. Many of these factors are akin to those used by courts = in=20 determining whether injunctions are appropriate, including the=20 seriousness of the violation, the isolated or recurrent nature = of the=20 violation, the respondent's state of mind, the sincerity of the=20 respondent's assurances against future violations, the = respondent's=20 recognition of the wrongful nature of his or her conduct, and = the=20 respondent's opportunity to commit future violations. In = addition, we=20 consider whether the violation is recent, the degree of harm to=20 investors or the marketplace resulting from the violation, and = the=20 remedial function to be served by the cease-and-desist order in = the=20 context of any other sanctions being sought in the=20 proceeding.

KPMG Peat Marwick, LLP, 74 SEC Docket 384, 436 (2001);=20 see also WHX Corp., Exchange Act Rel. No. 47980 = (June 4,=20 2003).

Respondents' guilty pleas establish that they knowingly = committed=20 serious criminal violations and are a compelling indicator that = issuing=20 cease-and-desist orders is in the public interest. "It is well = settled=20 that a criminal conviction, whether by jury verdict or guilty = plea,=20 constitutes estoppel in favor of the United States in a subsequent = civil=20 proceeding as to those matters determined by judgment in the = criminal=20 case." United States v. Podell, 572 F.2d 31, 35 (2d Cir. = 1978);=20 see also Galluzzi, 78 SEC Docket 1125, 1128 = n.15=20 (Aug. 23, 2002) (citing Brownson, 77 SEC Docket 3636 (July = 3,=20 2002), pet. denied, No. 02-73194 (9th Cir. 2003) (absent=20 extraordinary circumstances, an individual with a criminal = conviction for=20 participating in a criminal conspiracy cannot be permitted to = remain in=20 the securities industry)).

Respondents' conspiracy to commit securities, wire, and mail = fraud was=20 broad, and enduring. Several Respondents acknowledged that the = conspiracy=20 caused investors to lose substantial sums, and each of the = indictments=20 charges that the defendants and other participants in the = fraudulent=20 scheme obtained tens of millions of dollars in profits. (Motion = and=20 Memorandum, Exhibits B at 12, C at 18, and D at 20.) It is = reasonable to=20 conclude that a conspiracy of this size caused substantial harm to = the=20 marketplace for securities as well as individual investors. The = Commission=20 has noted that in the "ordinary case and absent evidence to the = contrary,=20 a finding of past violation raises a risk of future violation = sufficient=20 to support our ordering a respondent to cease and desist." WHX=20 Corp., Exchange Act Rel. No. 47980 (June 4, 2003). The = violations=20 occurred in the mid-1990s, but the administrative proceeding was = stayed=20 for the two years before the parallel criminal case was resolved = by=20 Respondents' guilty pleas.

No Respondent filed a response in opposition to the Motion and=20 Memorandum and at the prehearing conference on September 4, 2003; = no=20 Respondent offered any mitigating evidence addressing the public = interest=20 issues.

For all the reasons stated, I find that all Respondents, except = Jonathan D. Winston, should be ordered to cease and desist from = committing=20 or causing any violations, or future violations, of Section 17(a) = of the=20 Securities Act and Section 10(b) of the Exchange Act and Rule = 10b-5.

Bar From Association With Any Broker or Dealer

Section 15(b)(6) of the Exchange Act empowers the Commission to = "censure, place limitations on the activities or functions of = [persons=20 associated with a broker or dealer at the time of the misconduct] = or=20 suspend for a period not exceeding 12 months, or bar such person = from=20 being associated with a broker or dealer" if the Commission finds = after=20 notice and opportunity for hearing that such a sanction is in the = public=20 interest.

In addition to deterrence, the = criteria the=20 Commission uses in making the public interest determination = are:

[T]he egregiousness of the defendant's actions, the isolated = or=20 recurrent nature of the infraction, the degree of scienter = involved, the=20 sincerity of the defendant's assurances against future = violations, the=20 defendant's recognition of the wrongful nature of his conduct, = and the=20 likelihood that the defendant's occupation will present = opportunities=20 for future violations.

Steadman v. SEC, 603 F.2d 1126, 1140 (5th Cir. 1979), = aff'd=20 on other grounds, 450 U.S. 91 (1981); see also = Joseph=20 J. Barbato, 69 SEC Docket 178, 200 n.31 (Feb. 10, 1999); = Donald T.=20 Sheldon, 51 S.E.C. 59, 86 (1992), aff'd, 45 F.3d 1515 = (11th=20 Cir. 1995).

The reasons set forth above that support imposition of a=20 cease-and-desist order are equally applicable here. Respondents' = actions=20 were egregious. They covered patently illegal activities and = continued in=20 most cases for extended periods of time. The continued = participation by=20 Respondents in the securities industry would allow an opportunity = for=20 future violations. See Galluzzi, 78 SEC Docket 1125, = 1128=20 n.15 (Aug. 23, 2002) (citing Brownson, 77 SEC Docket 3636 = (July 3,=20 2002), pet. denied, No. 02-73194 (9th Cir. 2003)).

None of the Respondents oppose the Motion and Memorandum and at = the=20 prehearing conference on September 4, 2003; no Respondent offered = any=20 mitigating evidence addressing the public interest issues.

For all the reasons stated, I find that all Respondents, except = Jonathan D. Winston, should be barred from being associated with a = broker=20 or dealer.

Order

Based on the findings and conclusions set forth above:

I GRANT the Motion for Summary Disposition, pursuant to Rule = 250 of the=20 Commission's Rules of Practice, as to the allegations in the OIP = against=20 Respondents David Hirsch, Christian W. Blake, Joseph P. Mannino, = David M.=20 Pesso, Michael Pugliese, Christopher J. Russo, and Robert J. = Winston;

I FIND that Respondents Hunter Adams, James L. Bila, Jason A. = Cohen,=20 Steven M. Cohen, Louis R. Facchini, Jr., John J. Gremmo, III, = Roberto A.=20 Mangiarano, David M. Margules, James J. Pellizzi, and Howard I. = Weinstein=20 are in default pursuant to Rule 155 of the Commission's Rules of = Practice=20 and that the allegations in the OIP are true as to them;

I ORDER, pursuant to Section 8A of the Securities Act of 1933 = and=20 Section 21C of the Securities Exchange Act of 1934, that = Respondents=20 Hunter Adams, James L. Bila, Christian W. Blake, Jason A. Cohen, = Steven M.=20 Cohen, John J. Gremmo, III, Louis R. Facchini, Jr., David Hirsch, = Roberto=20 A. Mangiarano, Joseph P. Mannino, David M. Margules, James J. = Pellizzi,=20 David M. Pesso, Michael Pugliese, Christopher J. Russo, Howard I.=20 Weinstein, and Robert J. Winston to CEASE AND DESIST from = committing or=20 causing any violations, or future violations, of Section 17(a) of = the=20 Securities Act and Section 10(b) of the Exchange Act and Rule = 10b-5=20 thereunder;

I FURTHER ORDER, pursuant to Section 15(b)(6) of the Securities = Exchange Act of 1934, that Respondents Hunter Adams, James L. = Bila,=20 Christian W. Blake, Jason A. Cohen, Steven M. Cohen, John J. = Gremmo, III,=20 Louis R. Facchini, Jr., David Hirsch, Roberto A. Mangiarano, = Joseph P.=20 Mannino, David M. Margules, James J. Pellizzi, David M. Pesso, = Michael=20 Pugliese, Christopher J. Russo, Howard I. Weinstein, and Robert J. = Winston=20 are BARRED from association with any broker or dealer; and

I FURTHER ORDER, that this proceeding will remain open for = ninety days=20 or until December 8, 2003, to allow the Division an opportunity to = submit=20 a request for additional sanctions against Respondents in the form = of=20 disgorgement or civil money penalties or both, pursuant to Section = 8A of=20 the Securities Act of 1933 and Sections 21B and 21C of the = Securities=20 Exchange Act of 1934. If the Division has not submitted a request = at the=20 end of ninety days, I will act to close this proceeding.

Brenda P. Murray
Chief Administrative Law Judge

 

1 A sealed indictment filed on December = 7, 2000,=20 was unsealed on March 8, 2001. A Superseding Indictment was filed = on=20 October 31, 2001, and a Second Superseding Indictment was filed on = February 4, 2002. (Motion and Memorandum at 5.) The indictments = all charge=20 that Respondents and others obtained "tens of millions of dollars = in=20 profits" from a criminal conspiracy by controlling large blocks of = publicly traded securities in thinly capitalized, start-up = companies.=20 (Motion and Memorandum at 20, Exhibits B at 12, C at 18, and D at = 20.)=20

2 The two volumes are labeled (1) = Declaration of=20 Cynthia A. Matthews in Support of the Division of Enforcement's = Motion for=20 Partial Summary Disposition and Default Judgment, and (2) = Matthews's=20 Declaration and Exhibits, Volume II.

3 I will refer to these materials as = Motion and=20 Memorandum, Exhibit __.

4 On August 13, 2003, I received = Christopher=20 Russo's Response to the Division's Motion and Memorandum, which = included a=20 copy of Respondent Russo's answer filed May 29, 2003. The Division = does=20 not oppose Respondent Russo's request to convert its motion for = partial=20 default as to him to a motion for partial summary disposition. =

5 The transcript of Respondent Adams's = court=20 appearance to change his plea to guilty is mistakenly dated 2003. = (Motion=20 and Memorandum, Exhibit E.)

6 The Division represents that = Respondent Adams=20 pled guilty to Counts One and Two of the Second Superseding = Indictment,=20 namely, knowingly and willfully conspiring to commit securities = fraud with=20 respect to securities, including the securities of Ashton and = NMFS, and=20 committing fraud with respect to NMFS securities. (Motion and = Memorandum=20 at 11.)

7 In 1997, a group of individuals = associated with=20 First United formed Lexington Capital, a registered broker-dealer, = and in=20 1998 changed its name to Preston Langley Asset Management, Inc. = ("Preston=20 Langley"). (Motion and Memorandum, Exhibit D at 3-4.)

8 The transcript of Respondent J. = Cohen's court=20 appearance to change his plea to guilty is mistakenly dated 2003. = (Motion=20 and Memorandum, Exhibit G.) The Division maintains that Respondent = J.=20 Cohen pled guilty to knowingly and willfully conspiring to commit=20 securities fraud with respect to securities, including Ashton and = NMFS=20 securities. (Motion and Memorandum at 11-12.)

9 The Division states that Respondent = S. Cohen=20 pled guilty to knowingly and willfully conspiring to commit = securities=20 fraud with respect to securities, including the securities of = Ashton and=20 NMFS, and committing fraud with respect to NMFS securities. = (Motion and=20 Memorandum at 12.)

10 Americom was a publicly traded = security,=20 Americom Networks International, Inc. (Motion and Memorandum, = Exhibit D at=20 15.)

11 The Division states that Respondent = Bila pled=20 guilty to knowingly and willfully conspiring to commit securities = fraud=20 with respect to securities, including the securities of Ashton and = NMFS,=20 and to a substantive count of committing securities fraud. (Motion = and=20 Memorandum at 13.)

12 The Division represents that = Respondent Blake=20 pled guilty to knowingly and willfully conspiring to commit = securities=20 fraud with respect to securities, including the securities of = Ashton and=20 NMFS, and to a substantive count of committing securities fraud. = (Motion=20 and Memorandum at 13.)

13 The Division states that Respondent = Facchini=20 pled guilty to knowingly and willfully conspiring to commit = securities=20 fraud with respect to securities, including the securities of = Ashton and=20 NMFS, and to committing securities fraud with respect to Ashton=20 securities. (Motion and Memorandum at 13.)

14 Respondent Gremmo's guilty plea on = January=20 23, 2002, was to the charges in the Indictment although he was = named in=20 the Superseding Indictment, filed on October 31, 2001.

15 The Division states that Respondent = Gremmo=20 pled guilty to knowingly and willfully conspiring to commit = securities=20 fraud with respect to securities, including the securities of = Ashton and=20 NMFS, and to committing securities fraud with respect to Ashton=20 securities. (Motion and Memorandum at 14.)

16 According to the Division, = Respondent=20 Mangiarano pled guilty to knowingly and willfully conspiring to = commit=20 securities fraud with respect to securities, including the = securities of=20 Ashton and NMFS, and to a substantive count of committing = securities=20 fraud. (Motion and Memorandum at 14.)

17 The Division represents that = Respondent=20 Mannino pled guilty to Counts One and Six of the Second = Superseding=20 Indictment, namely knowingly and willfully conspiring to commit = securities=20 fraud with respect to securities, including the securities of = Ashton and=20 NMFS, and to a substantive count of committing securities fraud. = (Motion=20 and Memorandum at 14-15.)

18 The Division states that Respondent = Margules=20 pled guilty to knowingly and willfully conspiring to commit = securities=20 fraud with respect to securities, including the securities of = Ashton and=20 NMFS, and to a substantive count of committing securities fraud. = (Motion=20 and Memorandum at 15.)

19 The Division states that Respondent = Pellezzi=20 pled guilty to knowingly and willfully conspiring to commit = securities=20 fraud with respect to securities, including the securities of = Ashton and=20 NMFS, and to a substantive count of committing securities fraud. = (Motion=20 and Memorandum at 15.)

20 The Division states that Respondent = Pesso=20 pled guilty to knowingly and willfully conspiring to commit = securities=20 fraud with respect to securities, including the securities of = Ashton and=20 NMFS, and to committing securities fraud with respect to Ashton=20 securities. (Motion and Memorandum at 16.)

21 The Division represents that = Respondent=20 Pugliese pled guilty to knowingly and willfully conspiring to = commit=20 securities fraud with respect to securities, including the = securities of=20 Ashton and NMFS, and to committing securities fraud with respect = to Ashton=20 securities. (Motion and Memorandum at 16.)

22 The Division represents that = Respondent Russo=20 pled guilty to knowingly and willfully conspiring to commit = securities=20 fraud with respect to securities, including the securities of = Ashton and=20 NMFS, and committing securities fraud with respect to Ashton = securities.=20 (Motion and Memorandum at 16-17.)

23 The Division represents that = Respondent=20 Weinstein pled guilty to knowingly and willfully conspiring to = commit=20 securities fraud with respect to securities, including the = securities of=20 Ashton and NMFS, and to committing securities fraud with respect = to Ashton=20 securities. (Motion and Memorandum at 17.)

24 The Division represents that = Respondent R.=20 Winston pled guilty to knowingly and willfully conspiring to = commit=20 securities fraud with respect to securities, including the = securities of=20 Ashton and NMFS, and to a substantive count of committing = securities=20 fraud. (Motion and Memorandum at 17-18.)

25 I am not bound by agreements that = the=20 Division negotiates with Respondents.

26 The Division is in negotiations = with=20 Respondent J. Winston and is not requesting disposition of the = allegations=20 in the OIP as to him at this time. (Motion and Memorandum at 1 = n1.)

27 Rule 155 of the Commission's Rules = of=20 Practice does not provide for partial defaults and the concept of = default=20 does not lend itself to a status that can exist in a partial = state.

28 Respondent J. Winston has indicated = that he=20 will consent to the relief the Division requests in the Motion and = Memorandum.

29 In A.S. Goldmen & Co., = Ad. Proc.=20 3-9933, the Division thought it necessary to seek Commission = modification=20 of the OIP to forgo seeking disgorgement where the Supreme Court = of the=20 State of New York had issued an Order of Restitution that included = the=20 Respondent's profits from illegal activities. A.S. Goldmen = &=20 Co., Initial Decision Release No. 231 (June 27, 2003). =

=20

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Modified:=20 = 09/09/2003